Inventory and order management is the process of tracking the remaining goods a company has in its stock. It involves the processing of restocking, storing, and releasing the goods. This process becomes more challenging once the number of Products sold increases. The inventory process also becomes more complicated when there are new products that are being offered to your customers.
Since the marketplace is very competitive, it is vital for a business owner to have a good inventory and order management system. It is a process that is overlooked by many without realizing that it’s an integral part of running a smooth and successful business. It’s a must to have an efficient and accurate inventory system or else; you might risk not meeting the demands of your customers and end up losing money.
By having a successful inventory management system, you will have a more detailed insight into the operation of your business. You will have peace of mind knowing that you are not miscalculating the number of goods you have in your stock.
Here are some techniques on how to approach your inventory and order management system for you to stay efficient and effective in the competitive landscape.
Categorizing is an excellent place to start to manage your inventory effectively. This process is simple and easy to understand. You have to categorize your goods according to their importance. Identify which orders you need to prioritize because they move frequently and which items move more slowly. Experts suggest that you use the ABC analysis. A refers to the best selling stocks which call for replenishment regularly. You will know which goods belong to A category by investigating which items sell first and which items are popular with your customers. Category B is medium priority stock. These are products that are less popular than category A and usually take a month or two before they need replenishment. Although it’s not highly popular, customers will still notice if they go out of stock. Items that belong to category C are products that are less in demand compared to A and B. You usually have more of these despite the less demand. You need to order these products in smaller amounts for you to save cost.
Make sure you track all information about the products in your stock. You need to save the important details such as the barcode, serial number, supplier information, and place of origin. You may also have to include the price of the item so you will be aware of changes happening in the future.
This process goes beyond computing your total sales at the end of the day. Tracking of sales means you need to know what goods you sold, how many of them, and then you need to update your inventory total based on this information. Having records of sales will help you analyze which products are popular on a regular basis and which products fall on seasonal items. Having a broader picture of your sales records will help you manage your inventory system under control.
Invest in inventory and order management technology
Manually managing your inventory using spreadsheets is okay given that your business is starting. However, once your business starts to grow, doing the manual method will make you spend more time on inventory rather than running your business. Invest in good inventory management software so it will be easier for you to tackle these tasks. Understand what you need and make sure you choose an inventory system solution that is easy to use and will help you manage your stocks.